This have never happened before ever!
Global supply chains AND Demand Chains collapse!!
— Shaker Cherukuri (@ProcessISInc) April 8, 2020
Not even in 2008 or 2001 or 1930s. How is that possible?
Natural disasters, which is what Coronavirus is, usually impact global supply chains if the disaster happens at a global supply base location.
This causes supply shortage, price spike, demand contraction or new supply and self correction.
A recession causes demand collapse, supply glut, price collapse, supply contraction and self correction.
Now we are about to see both simultaneously: Supply disruption AND demand collapse. There is no precedent for this.
Yes, we have had pandemics before, however it was before globalization and global trade and global intertwined economy. All impact was local. There was no global savings glut or global trade or global travel.
We do, however, have $30+ Trillion of global QE stimulus out there now when we combine 2008 and 2020.
2008 + 2020 now adds upto $10 Trillion In QE/stimulus. Just the US. Globally, is what $30 Trillion? Should be an awesome 20s.
— Shaker Cherukuri (@ProcessISInc) April 4, 2020
Who will be doing the consumption?
1. humans will lose their economic and military usefulness, hence the economic and political system will stop attaching much value to them.
2.The system will continue to find value in humans collectively, but not in unique individuals.
— Shaker Cherukuri (@ProcessISInc) September 30, 2018